In Capital Rationing,an Initial Screening of Alternative Proposals Is Usually

question 57

Multiple Choice

In capital rationing,an initial screening of alternative proposals is usually performed by establishing minimum standards.Which of the following evaluation methods are often used?

• A) cash payback method and average rate of return method
• B) average rate of return method and net present value method
• C) net present value method and cash payback method
• D) internal rate of return and net present value methods

Understand the definition and classification of different types of strikes.

Recognize the legal rights and protections afforded to striking workers under the National Labor Relations Act (NLRA).

Distinguish between economic strikes, sympathy strikes, recognition strikes, and illegal strikes.

Understand the implications and legality of strike actions, including picketing, boycotting, and the use of strike replacements.

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Definitions:

Contract Rate

Rate of interest (based on face value) stated on bond certificate and bond indenture.

Market Rate

The prevailing interest rate available in the marketplace for instruments of similar risk and maturity, also known as the "market interest rate."

Bonds

Financial instruments representing a loan made by an investor to a borrower, often corporate or governmental, that pays periodic interest and the principal at maturity.

Face Value

The amount the corporation must repay to the bondholder at the maturity date.